Opinion on Corporate Governance

 

Corporate governance is the first test I will do when I pick a stock. Why is it so important?  

If you are investing for a long term, corporate governance matters a lot to you. For short term investing, it does not matter.  For example, you are an investor in Transmile for the past 5 years. ..continue here

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2 Responses to Opinion on Corporate Governance

  1. […] vitaliy wrote an interesting post today onHere’s a quick excerptCorporate governance is the first test I use when I pick a stock. Why is it so important?   If you are investing for a long term,corporate governance matters a lot to you.    For short term,it does not matter.  For example,you are an investor in Transmile for the past 5 years.   Your whole net worth dipped by a huge amount due to accounting scandal.   And more crimes are expected to emerge in the future. Why the directors are not afraid of the laws?    The article is taken from The Edge.It explains SC’s responsiblities,CCM’s responsibilities,   Police’s responsibilities,Court’s responsibilities.    It looks like our law is just good on paper.It doesn’t really give justice.    So,investors should really take care of their own @ss when investing.    That increases the risk in stock investing.    And that explains why so many foreign investors stay outside Bursa.  Once bitten,twice shy.   […]

  2. To improve the probability of long term investing success investors should seek a fully documented investment tool to improve their decision making. While their is never a guarantee of success, working with a validated process increases the prospects of finding a rational stock trading strategy that really works.

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